$BTC Expectations are that the PPI will rise, the DXY will strengthen, and Bitcoin will face selling pressure (bearish). This is a classic market reaction. Although the market’s reaction to the PPI could be more severe than usual, one factor is tempering it,a recession is on the horizon. If the Fed raises interest rates too aggressively amid an economic slowdown, it will trigger stagflation (high inflation + a sluggish economy). Instead, the Fed will be forced to adopt a dovish stance (lower interest rates) to save the economy. There are several possible reasons why the market’s reaction to yesterday’s inflation (CPI) data was muted, resulting in a less severe correction for BTC. The market had already priced in the expectation of poor CPI data. It is highly likely that the “bad news” had already been factored into prices in the days leading up to the release. As a result, when the actual data was released, the impact was not as significant as expected. Although the PPI is important as an early indicator, the Fed focuses its policy more on the PCE. The CPI and PPI serve as supporting data, but the PCE is the "key benchmark" for inflation. Yesterday’s reaction to the CPI may have been muted because the market was waiting for other data releases to get a more complete picture.